Munjal Showa Ltd Stock Analysis

BSE: 520043 | NSE: MUNJALSHOW | Auto Ancillary | Small Cap

BSE Share Price Aug 16, 12:03
103.00 -0.75 (-0.72%)

DeciZen - Make an Informed Decision on Munjal Showa

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Fair

3. Price Trend

Munjal Showa Price Chart

P/E Ratio (SA) :
28.26
Market Cap :
415 Cr.
52-wk low :
92.7
52-wk high :
147.6
Bole Toh?

1. Is Munjal Showa Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Munjal Showa Ltd is a average quality company.

2. Is Munjal Showa Ltd undervalued or overvalued?

The key valuation ratios of Munjal Showa Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Munjal Showa Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Munjal Showa Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Munjal Showa:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Munjal Showa Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 21.2%20.9%18.6%13.6%11.3%13%8.5%5.4%3.5%1.3%-
Value Creation Index 0.50.50.3-0.0-0.2-0.1-0.4-0.6-0.8NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,5811,5981,6431,5021,4601,5811,6691,2881,0851,0601,181
YoY Gr. Rt. %-1.1%2.8%-8.6%-2.8%8.3%5.6%-22.8%-15.8%-2.3%-
Adj EPS 16.117.317.714.613.517.512.48.35.523.7
YoY Gr. Rt. %-7.6%2.4%-17.5%-7.2%29.5%-29%-33%-34.2%-64.2%-
BVPS (₹) 75.789102.7113.2128.2142.4152.7158.2160.4159.4159.4
Adj Net Profit 64.269.170.858.454.270.149.833.321.97.915
Cash Flow from Ops. 11655.155.56583.596.34165.7-17.529.9-
Debt/CF from Ops. 0.2000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -4.4%-6.2%-14.1%-2.3%
Adj EPS -20.8%-32.1%-46%-64.2%
BVPS 8.64.51.4-0.6
Share Price 4.3% -13.9% -7.9% -25.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 232118.513.511.2138.45.43.41.22.3
Op. Profit Mgn % 6.76.77.77.56.87.25.452.20.81.4
Net Profit Mgn % 4.14.34.33.93.74.432.620.71.2
Debt to Equity 0.1000000000-
Working Cap Days 55566473778586971121210
Cash Conv. Cycle 4513222424263345490

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 2.30%

Sales growth has been subdued in last 3 years -14.05%

Net Profit has been subdued in last 3 years -45.99%

Sales growth is not so good in last 4 quarters at 5.70%

Latest Financials - Munjal Showa Ltd.

Standalone Consolidated
TTM EPS (₹) 3.7 -
TTM Sales (₹ Cr.) 1,181 -
BVPS (₹.) 159.4 -
Reserves (₹ Cr.) 630 -
P/BV 0.65 -
PE 28.26 -
From the Market
52 Week Low / High (₹) 92.70 / 147.60
All Time Low / High (₹) 1.40 / 312.00
Market Cap (₹ Cr.) 415
Equity (₹ Cr.) 8
Face Value (₹) 2
Industry PE 40

Management X-Ray of Munjal Showa :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Munjal Showa

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Munjal Showa Ltd

Munjal Showa was established in 1985, in technical and financial collaboration with Showa Corporation of Japan, the pioneering global leaders, is engaged in the manufacture of shock absorbers, Munjal Showa Limited is a member of Hero Group.

The company is one of the biggest manufacturers of shock absorbers, telescopic front forks, struts, gas struts, window balancers / gas springs in the country. Nearly 95% of company’s revenues come from the two-wheeler industry, out of which Hero Honda alone accounts for 85%. Thus, MSL is assured of a sizeable offtake at all times.

Munjal Showa Limited in Hero Group’s joint venture with Showa Corporation, designs and manufacturers shock absorbers and struts for leading two-wheelers and four-wheelers. The Munjal Showa manufacturing plant is spread over an area of 24075 sq mt in the industrial area of Gurgaon, Haryana, on the outskirts of the National Capital Territory of Delhi, India.

Munjal Showa Limited is one of the largest suppliers of shock absorbers to major auto giants in India, Japan, Germany, the United States and the United Kingdom, amongst other developed markets. The Company's products conform to the highest standards of quality, safety, comfort and dependability and are QS 9000, ISO 14001 and ISO 9001 compliant. The use of advanced technology and a team of experienced personnel have led to outstanding growth in the Company.

Munjal Showa Limited has established a strong foothold in the auto ancillaries manufacturing market and enjoys a wide patronage. Munjal Showa products serve as original equipment to a wide range of Maruti Suzuki upper-end cars and export models, Honda City car, complete range of Hero Honda motorcycles, Kawasaki Bajaj motorcycles, Kinetic Scooters and Hero range of mini-motorcycles and mopeds and Honda Motorcycles and Scooters India (Pvt) Limited. In over a decade the company's state-of-the-art shock absorbers, front fork, struts and window balancers/gas springs have become symbols of reliability and quality for popular two and four wheeled vehicles.

Better products through better technology - this is the maxim that guides the Munjal Showa team. The eco-friendly plant at Gurgaon is equipped with ultra modern facilities. A team of expert engineers from Showa, Japan, support and monitor the production of virtually zero-defect products. Our manufacturing methods are continually modified and improved upon, in order to realize goals of higher productivity. We are using the Japanese system of encompassing 5S, 3G, 3K, 3M, in the work culture thus promoting efficiency at the team level and a clean production system.

Product range of the company includes:

  • Front Fork for two-wheelers
  • Front/Rear Cushion for two-wheelers
  • Front/Rear Strut for Maruti
  • Open Stay for Maruti
  • Front/Rear Strut for Honda Siel.

Awards/Achievements

  • The company is ISO 9002, 9001, 9000, 14001, TS-16949 certified.
  • In Sep. 2001 won 1st prize in CII-QC. Circle competition at Chandigarh.
  • In Oct. 2001 won 2nd prize in CII-QC. Circle competition at Delhi.
  • In 2002, rated as the best company by Honda Siel in quality improvement activity.
  • In 2003, won 1st prize in CCQC’03.
  • Munjal Showa has been assigned API+ rating for a Rs 60 million commercial paper programme by CRISIL.

Recent developments

Munjal Showa has commissioned its third plant in the holy city of Haridwar in Uttrakhand, during the year with an initial capacity of 5 million shock absorbers per year to cater to the needs of Hero Honda Motors. The new plant is installed to avail the concessional tax structure and incentives offered by the state. The new plant has strengthened company’s position in the industry and reduced cycle time for a development of new models.

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